Fund manager African Infrastructure Investment Managers (AIIM) through its Ideas Managed Fund has acquired majority stakes in three new solar power plants in South Africa totalling 30MW.
The projects, which reached financial close in May, are expected to reach commercial operation in March and April 2023.
They will connect via a combination of wheeling and behind the meter solutions, feeding energy into Harmony operations in the Welkom area in South Africa.
Construction is expected to start in June.
They will deliver 68 gigawatt-hours of electricity in the first 12 months of operations and 1.3 terrawatt-hours over the 20-year lifespan of the facilities.
The portfolio has been financed through a mix of debt and equity.
Equity was funded by Ideas Managed Fund and the Mahlako Financial Services-managed Mahlako Energy Fund 1.
Debt was provided by Rand Merchant Bank, a division of FirstRand Bank.
The projects were jointly developed by BBEnergy, Energy Group and Harmony.
AIIM investment director at and co-portfolio manager of the IDEAS Managed Fund Sean Friend said: “Together with our partner Mahlako, we are excited to conclude this transaction and create a long-lasting partnership with Harmony.
“This portfolio further entrenches Ideas as a leading investor in the renewable energy, as well as the commercial and industrial private power market in particular.
“We look forward to pursuing additional investments in this sector, in light of the focus on clean energy and the need to pursue a sustainable energy mix for SA.”